Chapter 1 of Part 2 of the Finance Act 2001 is amended by inserting the following sections after section 105:

"105A.  Underpayments.

(1) Unless a notification in writing stating that an amount of excise duty is due has been issued by the Commissioners before the expiry of a period of 4 years from the date of the act or event giving rise to the liability for that duty, proceedings for the recovery of such an amount may not be instituted or other action for such recovery taken, except where there are reasonable grounds to believe that any form of fraud or neglect has been committed by or on behalf of any person in connection with that liability.

(2) In this section 'neglect' means negligence or a failure to give any notice, information or record or to make any return required to be given or made under the provisions of the statutes which relate to the duties of excise, and of any instruments relating to those duties made under statute.

(3) This section comes into operation on such day as the Minister for Finance may appoint by order.

105B.  Repayment of overpaid duty.

(1) Subject to the other provisions of this section and section 105C where a person has paid an amount of excise duty or interest on excise duty which was not due from that person, the person is entitled to repayment of the amount involved.